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Bravo: CPS Group – The Outstanding Crypto Payment Facilitator Under Russian Control!

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CPS Group: A Resilient Player in the Crypto Payment Space Amid Sanctions

Since the commencement of the conflict in Ukraine in February 2022, Russian financial service providers have faced significant hurdles due to stringent Western sanctions. In contrast, CPS Group, operating through its cryptocurrency payment platform CryptoPay, has demonstrated resilience and adaptability in navigating these obstacles. The cyber rating agency PayRate42 has recognised this success by awarding CPS Group a commendable rating, reflecting its strong position in a challenging environment.

Overview of CPS Group

Incorporated in England and Wales, CPS Transfers Limited is regulated by the Financial Conduct Authority (FCA) as a Small Payment Institution (SPI) under reference number 776056. Established in 2016 by Russian nationals, CPS Group encompasses the crypto payment processor CryptoPay, which runs operations through registered companies in Estonia and Lithuania.

The cornerstone of CPS Group lies in its crypto payment operations, which span multiple entities within the group:

  • CPS Solutions OÜ: Based in Estonia with a crypto license from the Estonian FIU.
  • UAB CPS Payments: Located in Lithuania and recognised as a Virtual Currency Exchange Operator.
  • CPS Transfers Limited: FCA-authorised in the UK as a Small Payment Institution (SPI).

In the European Union, CryptoPay provides a Visa debit card through DiPocket UAB, an Electronic Money Institution (EMI) sanctioned by the Bank of Lithuania (BOL) and a Principal Visa Member.

The financial health of the CPS Group appears strong according to PayRate42’s findings:

  • Share capital: €375,000 across Lithuania and Estonia.
  • The Lithuanian branch reported a net profit exceeding €1.16 million for 2023.
  • The Estonian entity demonstrated a taxable turnover of almost €2.2 million projected for 2024.
  • Meanwhile, the British entity maintained net assets of approximately GBP 361,000 at the close of 2022, having previously shown profitability.

Public records suggest that CPS Group officials have not been residing in Russia for an extended period.

Operational Model

The FCA-registered CPS Transfers primarily oversees debit card operations linked to CryptoPay and manages related transactions. CryptoPay offers a comprehensive suite of services for both individual customers and merchants, including digital wallets, cryptocurrency purchases, and payment processing options. Merchants can process transactions in various cryptocurrencies, and CryptoPay distributes both physical and virtual Visa cards to streamline crypto-based purchases.

It is worth noting that CPS Group has discontinued its Stockflare offering.

High-Risk Segment Involvement

CryptoPay has been identified as a payment facilitator within the online casino domain, servicing various operations, including those of unlawfully operating casinos such as Zet Casino, PlayZilla, Dolly Casino, and Cazimbo. Analysis of site traffic reveals a concentrated focus on the high-risk segment; however, it’s essential to recognise that numerous fintechs and crypto payment providers engage in similar activities intertwined with online gaming.

Rating Overview

After meticulous scrutiny of annual financial reports and commercial registration documents, PayRate42 has bestowed a very good rating upon CPS Group. The agency concluded that the group possesses a robust financial structure alongside a sustainable business model. As a result, CPS Transfers and PayCrypto have been recognised on PayRate42’s Green Compliance and Green Risk list.